Insurer Bad Faith in Kentucky
Some insurance companies seem to view their customers—the “insureds” who have purchased policies from them—more as enemies than people to whom they owe a duty. Large insurance companies may go s far as to reward the people who work in the claims handling area—claim managers, adjuster, etc.—for minimizing the amount of money they pay out on claims.
But the insurer’s conduct doesn’t have to be anywhere near that blatant to harm the insureds that have paid premium after premium for insurance protection that the insurer may ultimately deny them in order to save money.
Insureds Can Sue for Bad Faith
Kentucky provides insureds who have been harmed by this kind of “bad faith” the right to sue the insurer for bad faith. That right started out with a court decision (“common law”) and has been augmented with specific statutes that spell out what an insurer cannot do.
Unlike many other states, Kentucky provides a fairly narrow right to sue, requiring that suit can only be brought if the insurer:
• Is obligated to pay the claim under the terms of the polic...
When it comes to the first goal looking at our peers, GEICO strives to be the highest-rated peer in categories such as severity and parts usage. In many aspects based on the currently available information, GEICO is behind one of its peers. These peers are not identified in the reports but that should not affect the handling of the claim. As a division, customer service is also a major focus by the company. Loyalty and seasoned business make more money for GEICO than customers who consistently change insurance companies. By keeping these customers happy, GEICO ensures their long-term viability as a source of income for the company. Finally, auto damage adjusters are responsible for keeping claims severity low and handling claims in the most cost-effective manner possible. Auto adjusters write estimates and value cars and writing an estimate too high or not getting an accurate value affects the company’s profit, which is shared with associates. These goals are just some of the many the auto damage department has on an everyday basis. While specific goals are always changing within the company, providing excellent customer service and a disciplined balance sheet are always ones AD strives to
One of the biggest contributors to health care costs that I have seen during my time in the healthcare industry is insurance fraud. One example of such fraud came about two months ago. I was taking a phone call from a provider that was upset that one of their claims had denied even though all of their previous claims had been paid. In researching with a partner plan it was determined that the claim denied because this medical provid...
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"1- The name of the insured, or of some person who effects the insurance on his